Spur Interactive

If you missed Internet Retailer, AD-Tech, the Internet Ad Bureau conference or Online Marketing Summit, you’re in luck!  Below are some of the highlights and takeaways from the conference.  Feel free to share with your colleagues!

GENERAL STATS:

The Web continues to grow in importance to all of us:

• Ecommerce will exceed $550bn globally and $200 billion in the U.S. in 2008, still accounts for less than 4% of U.S. retail sales
• IBM reported that adults spend almost as much time online as they do watching TV: 60% of adults spend 1-4 hours online each day (66% watch 1-4 hours of TV)
• Teens spend 20% more time online than they do watching television (13 hours / week)

Online advertising remains one of the economy’s fastest growth markets…

• Digital ad spend is expected to exceed $26bn in 2008 (up 23% from 2007) and $41bn by 2011.
• Digital now comprises 7.5% of ad spend (up from 5% in 2006).
• 85% of B2B marketers are increasing online budgets in 2008.
• GM is shifting 50% of its $3bn ad budget to digital
• McKinsey reported that by 2010, 2/3 of CMOs expect to spend more than 10% of ad budgets online. 11% expect to spend more than 50% of budgets online. More than 2/3 of respondents believe online media is more efficient than traditional advertising.

Traditional media channels are struggling (Geoff Ramsey, eMarketer)

• Radio ad spending is expected to contract 3% in 2008
• Newspaper ad spend is expected to contract 8% in 2008

Many still struggle with online marketing (Chris Vollmer, Booz Allen Hamilton)

• #1 pain point: inability to measure effectiveness of online efforts
• Also of note: brands need to improve integration of all activities (creative, media, reporting, analysis).
• Only 25% of respondents felt they were sufficiently savvy to manage the entire interactive process.

Leaders are taking action to put in place:

• Metrics and capabilities to assess impact of digital efforts
• ROI dashboards
• New positions to coordinate integration of efforts and agency relationships

Leading digital agencies and media companies…

• Invest to help marketers “get it”
• Link metrics to marketer brand/business objectives
• Don’t just sell ad space – they sell solutions
• Turn Consumer Insight to Marketer Foresight

Trends

• The line between “above the line” and “below the line” is becoming blurred.
• The need for accountability and an increase in younger CMO’s will drive digital. Of all media channels, TV may get hurt the most.